According to Statistics Canada data, 45% of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses in the first few months of 2024. This figure represents a notable increase from 33% in 2022, highlighting the escalating financial strain on Canadian households.
The report underscores that this prolonged period of financial stress is also taking a toll on mental health. In spring 2024, over a third (35%) of Canadians described most days as "quite a bit" or "extremely" stressful due to financial issues.
The impact of rising prices varies significantly across different income and age groups. Nearly 60% of those in the lowest income quintile and about half of those in the second and third quintiles reported that rising prices greatly affected their ability to meet day-to-day expenses. In contrast, only 27% of individuals in the highest income quintile experienced similar financial stress.
Financial stress is also unevenly distributed among different age groups. More than half (55%) of Canadians aged 25 to 44 reported significant difficulty meeting daily expenses due to rising prices, compared to only 28% of seniors. Furthermore, 57% of individuals with disabilities reported financial strain, compared to 43% of non-disabled individuals.
The financial difficulties are closely linked to a lower quality of life. Only 17% of Canadians who experience frequent financial stress report high life satisfaction, in stark contrast to 70% of those who are not stressed about finances. Additionally, 73% of Canadians without daily financial stress have a hopeful view of the future, compared to just 35% of those who are financially stressed.
Housing affordability remains a significant concern. Approximately 38% of Canadians are "very concerned" about their ability to afford housing or rent due to rising home prices, up from 30% in 2022. This concern is particularly pronounced among younger Canadians, with 56% of those aged 15 to 34 expressing serious concerns about housing affordability. Concern decreases with age, with only 19% of Canadians aged 65 and older sharing this worry.
Despite the increased financial stress, reliance on community organizations for food and meals remains relatively stable. Around 23% of Canadians indicated that they might turn to community organizations for assistance in 2024, a slight increase from 20% in 2022.
The data for this report was collected between April 19 and June 3, 2024, as part of the Statistics Canada Canadian Social Survey.
